NKTR runs into sellers around 23.06 for the third day in a row
Nektar Therapeutics (NKTR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NKTR finished the week 4.63% higher at 23.04 after gaining $0.17 (0.74%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 23.04 marks the highest recorded closing price since February 21st. Trading up to $0.17 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NKTR as at May 22, 2020):
Friday's trading range has been $0.23 (1.0%), that's far below the last trading month's daily average range of $0.95. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NKTR. Prices continued to consolidate within a tight trading range between 22.27 and 23.07 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
Prices are trading close to the key technical resistance level at 23.12 (R1). The share ran into sellers again today around 23.06 for the third trading day in a row after having found sellers at 23.07 in the previous session and at 23.06 two days ago. The last time this happened on April 30th, NKTR lost -5.94% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 23.07 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 22.53 where further sell stops might get triggered. As prices are trading close to May's high at 23.12, upside momentum could speed up should Nektar Therapeutics mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Nektar Therapeutics. Out of 51 times, NKTR closed higher 62.75% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.71% with an average market move of 4.82%.